Following a string of high-profile scandals involving alleged misuse of federal funds in Minnesota, a group of Republican senators introduced legislation this week aimed at permanently barring fraudsters from accessing child care subsidies and expediting the deportation of non-citizens involved in the schemes.
Senators Rick Scott (R-FL) and John Cornyn (R-TX) unveiled the “Stop Fraud by Strengthening Oversight and More Accountability for Lying and Illegal Activity Act”—dubbed the Stop Fraud by SOMALIA Act. The bill’s title is a pointed reference to the specific community at the center of recent fraud investigations in the Twin Cities, but the text of the legislation goes further, explicitly naming foreign terror groups like Al-Shabaab and the Palestine Liberation Organization (PLO) as potential beneficiaries of the stolen funds.
The legislation comes in the wake of the massive “Feeding Our Future” scandal, where federal prosecutors charged dozens of individuals with stealing $250 million meant to feed children during the pandemic. More recently, viral reports and lawmaker inquiries have turned the spotlight on child care centers suspected of billing the government for children who were never there.
In an interview on Fox Business, Senator Scott highlighted the scale of the alleged financial drain. He pointed to reports from the TSA flagging nearly $700 million in U.S. currency flown out of the Minneapolis-St. Paul airport in suitcases over recent years. According to Scott, investigators believe much of this money was routed through hubs like Amsterdam and Dubai before ending up in Somalia.
“No Reinstatement” and Retroactive Deportations
The bill proposes some of the strictest penalties ever seen for federal grant fraud. Unlike previous regulations that allowed loopholes, the new bill mandates a “one strike and you’re out” policy that is impossible to evade.
Key provisions include:
- Irreversible Ban: Any provider found to have committed fraud—whether by falsifying enrollment or operating without a license—is banned for life from all HHS-funded child care programs.
- No Loopholes: The text explicitly states that providers cannot regain eligibility by changing their business name, reorganizing, merging with another entity, or even by repaying the stolen funds.
- State Liability: States are on the hook, too. If fraud is found, the State must reimburse the federal government, or have the funds deducted from their future administrative allotments.
READ: Is Your Nutrition Label Lying? Florida Reps Push For Stricter Accuracy Standards
Terror Ties and Immigration Crackdown
The bill’s immigration sections are particularly aggressive, targeting non-U.S. citizens who use child care fronts to fund foreign interests.
- Terrorism Inadmissibility: The bill amends the Immigration and Nationality Act to make any alien permanently inadmissible if they are debarred for fraud and determined to have supported a terrorist organization. The text specifically names Al-Shabaab and the Palestine Liberation Organization (PLO).
- Mandatory Detention & Expedited Removal: Alien providers caught defrauding the system would face mandatory detention and expedited removal without further hearing. They would be permanently barred from asylum, adjustment of status, or findings of “good moral character.”
- Retroactive Enforcement: In a significant legal twist, the immigration penalties apply retroactively to any fraudulent conduct committed on or after September 30, 1996, provided the individual hasn’t yet been charged.
Political Fallout
The introduction of the bill adds pressure to Minnesota Governor Tim Walz, who has faced criticism from Senate Republicans for what they describe as a lack of oversight. In a joint statement, the senators accused the state administration of allowing a “morally bankrupt fraud empire” to take root. RELATED: “He May Be Complicit”: Noem Slams Walz as Trump Threatens “Insurrection Act”
“Families deserve to know what their taxpayer dollars are being used for,” Senator Scott said. “What we’ve seen in Minnesota, where federal dollars meant to support children are being fraudulently used, is outrageous.”
To ensure the crackdown happens immediately, the bill grants federal agencies the power to bypass standard “Paperwork Reduction Act” and administrative rulemaking delays to implement these changes the moment the bill is signed.
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